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While I agree that the PS4 portable is pretty stupidly late to do at this point, Vita did not fail because of it being too powerful.

It failed because the thing was too damn expensive. Phones can do what the Vita can do and they cost pretty cheap. Then there was also the fact that Sony charged their own SD cards that are way too expensive compared to other third party SD cards like Sandisk.

Its not the issue that a hybrid can kill the Playstation brand. Its just that it is too late to even do such a thing that its only going to make more loss than profit. If a portable is to be made, how can playing games on the go work?

Remember that the Switch uses Tegra. what can Sony use that is more powerful and less expensive? Snapdragon certainly isn't that cheap. Only other option is to use SD cards in built and we have seen how that turned out for Vita.

Sony is struggling at this point. Their TV business isn't top as it used to be, Vaio is dead, their phones aren't doing any better and Playstation is hardly keeping them relevant. Only thing that is keeping them around I think is movie production.